People's Daily Online -- New tax law helps charity

People's Daily Online -- New tax law helps charity: "New tax law helps charity
font size ZoomIn ZoomOut

More substantial steps should be made to implement the stipulation in a new act for encouraging corporate charity, says a signed article in Beijing News. An excerpt follows:

According to the Corporate Income Tax Law newly adopted by the National People's Congress, businesses can have their donations exempt from income tax when the amount is within 12 percent of annual revenue.

Compared with the previous stipulation, the new rule offers much greater incentive to encourage corporate donations by raising the tax-deductible percentage from 3 to 12 percent. This change will become a significant stimulus for businesses to contribute to charity once the law takes effect on January 1, 2008."